The markets found their lead in the stock market as the US Dow Industrial rallied 800-1000 points yesterday. The COVID19 dampened the market early as the US reported its second death from the disease. Both individuals who have passed from the disease have had compromised immune systems but the spread of the virus isn’t being taken any less lightly.
Markets are higher this am as traders expect some coordinated action to be announced after an emergency G-7 call this morning. Lack of news from this call would likely produce another sell off in the markets so be careful not to get too greedy on any nearby sales you need to make.
The averaging period is complete, and the corn price average used for insurance is $3.88,
soybeans $9.17, and Spring Wheat is $5.56. It’s interesting to note that the corn and soybean
prices logged in February for the RP Insurance program have a 76% correlation with the MY(marketing year) average price of the last 9 years, the Spring Average base price for RP has exceeded the average MY price received by farmers as recorded by the USDA. This is even more important when considering at least 15% of the corn/soybean/wheat bushels are uninsured under the RP program and open to risk to the producer. 2020’s corn support price is 12 cent lower than last year, and if that is a general indicator of the average price received in the coming MY, then average prices are going to be similar or lower to last year. The soybean average price is 37 cents lower than a year ago and despite the lower expected carryout the Feb average implies a lower average priced year.
Have a Safe Day!